My brief explanation as to why our housing bubble isn’t going to burst.
The most common question people ask me is: “When is the housing bubble going to burst?” Today I’d like to answer that question and explain where our market is at.
To get right to the point, leading economists seem to agree that a crash is not imminent. Why do they think this? The factors that led to the crash in 2008 are not present in 2021.
For example, the market in 2007 and 2008 was full of low down payments, flexible mortgage rates, and too much inventory. 2021 couldn’t be more different. High demand and low inventory are driving this hot market. In 2007, there were 4 million homes for sale. This summer, there are only 1.16 million. You add low interest rates into the mix, and suddenly we have today’s crazy market.
There’s a very interesting report where I found all this data. I can email them to you, or you can download them through the links below. They have a lot of great information, so I highly recommend you read them.
If you have any questions about today’s topic, or you’d like a copy of either report, do not hesitate to reach out to me. I am always willing to help.